Ghana requires an estimated US$9.3 billion to finance climate mitigation and adaptation measures, the Financial Stability Review 2025 has stated.
The Review said the financing gap highlighted the urgent need to mobilise public and private capital to address growing climate-related risks confronting the economy.
The report, prepared by the Financial Stability Council (FSC), said Ghana’s climate transition agenda sought significant reductions in greenhouse gas emissions, but achieving the targets would depend on access to sustainable financing instruments, including green bonds.
“The scale of financing required calls for innovative funding mechanisms and stronger regulatory frameworks to attract investment into climate-resilient projects,” the report said.
It warned that climate risks posed significant threats to Ghana’s long-term economic outlook, with projected Gross Domestic Product losses ranging between eight and 30 per cent by mid-century if mitigation measures were not effectively implemented.
The Review noted that flood-related losses were expected to double to about US$200 million annually by 2050, while heat stress and changing weather patterns could adversely affect agriculture.
It said the developments had implications for financial stability, as climate-related shocks could affect asset quality, insurance liabilities and investment returns across the financial sector.
The report said the Securities and Exchange Commission had introduced guidelines governing the issuance of green bonds in line with international best practices to promote transparency and accountability.
Under the guidelines, proceeds from green bonds are to be channelled into environmentally sustainable projects, including renewable energy, clean transport, green buildings and climate adaptation initiatives.
The Review said the framework also required regular disclosure and independent verification to prevent greenwashing and strengthen investor confidence in sustainable finance instruments.
It said a robust green financing regime would help attract institutional investors and support Ghana’s broader development objectives within the context of global climate commitments.
The report also noted that financial institutions were increasingly being encouraged to integrate environmental, social and governance considerations into their operations and risk management practices.
It stressed that stronger regulatory coordination and sustained policy support would be essential to developing a sustainable finance market capable of meeting Ghana’s climate financing needs.
The Review reiterated that although Ghana had made progress in establishing the regulatory foundation for green finance, closing the funding gap remained critical to safeguarding economic stability and building resilience against climate shocks.
GNA
